Private health insurance membership for hospital treatment has dropped, and only 44.2 per cent of Australians (11 million) now have health insurance.

Eisodes of care in the private sector are increasing, which tracks the growing number of insured older people as a proportion of all privately insured people.

A closer look at the APRA report shows medical services make up more than half of the average out-of-pocket cost for hospital visits. The gap amount for medical services varies, depending on the medical specialty and treatment location (see graphs below).

Older Australians are making the most hospital benefit claims, while younger people continue to drop their insurance cover.

For a breakdown of out-of-pocket payments, check out the graphs below.

War of words erupts over causes

The private hospitals industry group, Private Healthcare Australia, was quick to blame the “inflated” cost of medical technologies and devices, such as prosthetics.

It said that, “one of the most commonly used implants – cardiac stents, are five times the price here as they are in New Zealand.”

The Medical Technology Association of Australia hit back, saying insurers paid $13 million less for medical devices over the past financial year, making it the only sector to contribute to keeping private health insurance down, while insurers continue to post big increases in annual profits.

As always, the truth is likely to be somewhere in between.

Out-of-pocket Health Costs campaign continues

Ongoing increases in out-of-pocket costs are a major concern to National Seniors Australia because you, our members, tell us it is your single biggest concern.

That is why we pushed for important health cost reforms at the federal election.

As a result, the Federal Government has promised reforms to tackle cost issues, including a website of medical specialist doctor fees.

National Seniors Australia acknowledges Traditional Owners of Country throughout Australia and recognises the continuing connection to lands, waters and communities. We pay our respects to Elders both past and present.